MULTAN, April 20: The Multan Chamber of Commerce and Industry (MCCI) has urged the government to allow announcement of daily spot rates of cotton by the Multan Cotton Association (MCA).

In a presentation to Gen Pervez Musharraf, the chamber said the Multan region (south Punjab) produced about 80 per cent of the total production of the country’s cotton. Similarly, 80 per cent of the total transactions in the cotton market regarding purchase and sale were also carried out in this zone.

But the Karachi Cotton Association (KCA) had a monopoly over the issuance of daily spot rates of cotton. “In this way the cotton market stockholders in southern Punjab are deprived of their legitimate right.”

The letter reminded the president that he had promised to take positive steps, but so far no action had been taken by the Director Trade Organization (DTO).

The MCCI demanded that the DTO be directed to issue NOC to MCA to declare daily spot rates based on physical bargains of silver fibre in Multan.

The chamber also opposed the government proposal for the restoration of hedge (Satta) market in cotton trade which had been closed 28 years ago. The re-opening of the hedge market would encourage the business of future buying instead of real buying. The letter said the hedge market would only aggravate the cotton crisis to the detriment of growers in particular and the national economy in general.

The MCCI also urged the government to take stern action against the insurance companies that had defaulted in case of loss/damage to the insured stocks.

The chamber also demanded construction of head Muhammad-wala bridge over river Chenab to link Multan and Muzaffargarh through another bridge.

The MCCI also asked to upgrade the Multan civil airport so that wide-bodied planes could operate from here.